The subject of electric and hybrid mobility (EV) continues to garner more attention as its rapidly developing technology improves the prospects of viability and growth in market penetration.

This was highlighted by Greg Cress, Principal Director: Automotive & eMobility at Accenture South Africa, who gave a most revealing insight into the growth of eMobility, focusing on the subjects of residual values in an e-mobility environment, factors influencing residual values, opportunities and challenges in an African context and considerations for fleet owners.

Important factors influencing residual values were pinpointed as battery life and performance, the evolution of technology, charging infrastructure, government policies (in terms of government incentives and support programmes) and market demand.

Where vehicle mileage covered was an important consideration in residual value insofar as ICE vehicles with linear regression of wear were concerned, this was not the case with EVs where the state of battery health was the most important determinant, with non-linear regression indicating that mileage was not the major consideration.

Greg further highlighted some high-level considerations for fleet owners considering a transition in their fleets from ICE vehicles to EVs, being cost management and cash flow optimisation, vehicle replacement and life-cycle cost analysis, risk mitigation and financial exposure, lease vs purchase negotiations, tax and accounting compliance, sustainability and environmental goals and operational efficiency.

Insofar as the potential for growth in the EV market was concerned, important impediments were the high initial cost of acquisition and lack of charging infrastructure in some areas. However, increasing urbanisation, a growing middle class, renewable energy potential and decarbonisation were significant positives indicating that the future of the development of the EV market was getting ever brighter.

“There is no doubt that the future of the EV market in Africa will become more sustainable and viable as rapid technological development is expected to drive down costs. Furthermore, the mineral rich African Continent holds huge potential for focusing on beneficiation and the resultant economic benefits this will undoubtedly deliver in terms of economic growth, further enhancing cost-efficiency ratios,” he said.

The increasing importance of the EV sector was further alluded to by Stephan Kurzawski, Senior Vice-President: Consumer Goods & Sales at Messe Frankfurt, who announced that Automechanika Frankfurt 2024 would again feature a dedicated and expanded exhibition section to eMobility.